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iogann1982 [59]
3 years ago
13

Under the terms of his salary agreement, president Steve Walters has an option of receiving either an immediate bonus of $77,000

, or a deferred bonus of $98,000 payable in 10 years.
Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept?
Business
2 answers:
In-s [12.5K]3 years ago
8 0

Answer:

Immediate bonus of $77,000

Explanation:

Given the following

Immediate bonus = $77,000

Differed bonus = $98,000

Rate = 4%

Duration = 10

$66,205 deferred bonus

$77,000 immediate bonus

Calculating the differed bonus

We have

=$98,000 x 0.67556= $66,205

Present value of deferred bonus

= $66,205

He has a choice of collecting either an immediate bonus of $77,000, or collect a deferred bonus of $66,205 payable in 10 years

The best option for Walters is to collect an immediate bonus now

gulaghasi [49]3 years ago
5 0

Answer:

$66,205 deferred bonus

$77,000 immediate bonus

Explanation:

$98,000 discounted at 4% for 10 years

=$98,000 x 0.67556= $66,205

Present value of deferred bonus $66,205

Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $66,205 payable in 10 years

Therefore Walter should accept the bonus of $77,000 now.

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Assume a project will increase inventory by $61,000, accounts payable by $28,000, and accounts receivable by $36,000. what is th
masha68 [24]

The initial net working capital requirement for this project exists $69,000.

<h3>What is meant by net working capital?</h3>

The difference between a company's current assets such as cash, accounts receivable/unpaid invoices from customers, and inventories of raw materials and completed goods and its current liabilities such as debts and accounts payable is known as working capital, sometimes known as net working capital (NWC).

The difference between a company's current assets and current liabilities is known as net working capital. A company's balance sheet is used to calculate net working capital. The more net working capital you have, the more probable it is that your business will be able to pay its present commitments.

net working capital requirement = $61,000 − 28,000 + 36,000

net working capital requirement = $69,000

The initial net working capital requirement for this project exists $69,000.

To learn more about net working capital refer to:

brainly.com/question/26214959

#SPJ4

8 0
2 years ago
Partners, LLC members and S Corporation shareholders are not taxed on the amount they withdraw from the entity in a nonliquidati
kati45 [8]

Answer:

Partners: True

LLC: True

S Corporation: False

Explanation:

When dividends are withdrawn from a business tax is only due on a S Corporation because the tax paid for the profits of an organization is not by the stockholder withdrawing the dividends which is why when dividend is withdrawn the tax is to be paid.

When dividends are withdrawn in a partnership or and LLC then no tax is payable as tax is already paid on the profits made by the business that is why dividends are not taxable when withdrawn.

7 0
3 years ago
Why do you want to work at one of our restaurant ?
photoshop1234 [79]
Because I would like to learn etc. how to manage and what it takes to open a restraunt. ?
6 0
4 years ago
According to the Phillips Curve, the greater the aggregate demand for goods and services, the greater the economies output and t
Irina-Kira [14]

Answer:

Lower

Explanation:

If aggregate demand increases, then there will be a decline or decrease in unemployment in any country, even as more workers are hired, real GDP output and price level increases.

Phillips curve is simply a curve that depicts the short-run trade-off between inflation and unemployment.A decrease or a low unemployment correlates with high aggregated demand.

When there is a raise in aggregate demand = higher output + higher price level

On the Phillips curve, more GDP simply means less unemployment and higher price level.

8 0
3 years ago
An upscale restaurant offers a special fixe prix menu in which, for a fixed dinner cost, a diner can select from four appetizers
Oxana [17]

I guess the answer is 240.

By the <em>mn</em> rule, there are 240 different dinners that are available since,

4×3×4×5 = 240 different dinners


3 0
3 years ago
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